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I need help finding operating income and break even point Colegiate Canvas Co. currently makes and sells two models of a backpack. Data appicable to
I need help finding operating income and break even point
Colegiate Canvas Co. currently makes and sells two models of a backpack. Data appicable to the current operation are summarized in the following columns labeled Current Operation. Management is considering adding a Value model to its current Luxury and Economy models. Expected data if the new model is added are shown in the following columns labeled Proposed Expansion: Current O Luxury oonomyury Eoonomy Vaue Selling price per unit Variable expenses per unit Annual sa es volume-units Fwed expenses for year S 24 13 $24 13 7.5 18,000 18 9.5 7.500 9.6 7.5 9.6 8,000 11,000 21,000 Tocal of $69,000 Total of $88,000 Required: a. Calculate the company's current botal contribution margin and the ourrent average contribution margin ratio. Total contribution margn Average contibution margin ratio S 273.900 51 156 b. Calculate the company's current amount of operating income. ncome c. Calculate the company's current break-even point in dolar sales. (Do not round intermediate caiculations.)Step by Step Solution
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